AERA Bill, 2007 passed by Lok Sabha

The Bill for setting up the Airport Economic Regulatory Authority (AERA) was passed by the Lok Sabha today. The prime objective of AERA will be to create a level playing field and foster healthy competition among all major airports (Government owned, Public Private Partnership based, Private) encourage investment in airport facilities regulate tariffs of aeronautical services, protection of reasonable interest of users, operate efficient, economic and viable airports at notified airports.
The Authority shall consist of a Chairperson and 2 persons to be appointed by the Central Government from amongst persons having adequate knowledge and professional expertise in aviation, economic law, commerce or consumer affairs. The member shall be whole time appointees.
Whenever the Authority is deciding a matter involving a civil enclave in a Defence airfield, the Defence Ministry will be represented by an additional member on the Authority who will be nominated by the Ministry of Defence.
The function of the AERA will be to:
(i) Determine tariff structure for aeronautical services taking into consideration.
- capital expenditure incurred and timely investment in improvement of airport facilities.
- service provided, its quality and other relevant factors
- cost of improving efficiency
- economic and viable operation of major airports
- concession offered by central government in any MoU; etc. provided that different tariff structures are determined for different airports:
(ii) Determine the amount of development fees in respect of major airports
(iii) Determine amount of passenger service fee to be levied under the Aircraft Rules.
(iv) Monitor the performance standards relating to quality, continuity and reliability of service as may be specified by Central Government or any authority authorized by it.
(v) Call for information as may be necessary to determine the tariff.
Perform such other tariff related functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provision of the Act.
The Authority will also have penal powers. It will have the power to:
• Penalize for willful failure to comply with its orders and directions of the AERA Act.
• Punish for non-compliance of the orders of the Authority
• Penalize for offences by companies
• Penalize for offences by Government Departments.
The Authority shall determine tariff once in 5 years and may, if it considers appropriate in public interest amend, the tariff from time to time during the 5 years.
The AERA Bill was introduced in Lok Sabha on 5 September, 2007. It was, thereafter, referred for the consideration of the Department Related Parliamentary Standing Committee on Transport, Tourism and Culture.The Standing Committee examined the AERA Bill in consultation with the stakeholders and presented its report to the Parliament on 17 April, 2008. The Committee had made some recommendations most of which were introduced to the Bill.The Bill will now be introduced in Rajya Sabha.
22/10/08 Press Information Bureau (press release)

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Categories: Airports Oct 2008